Indian government bond yields inched lower on Monday as investors remained positive after JPMorgan last week included India in its emerging market debt index. The 10-year benchmark 7.18% 2033 bond yield was at 7.1281% as of 10:00 a.m. IST on Monday, after ending at 7.1570% in the previous session. “The sharp reversal in yields on Friday was because of profit booking, and many traders lightened their positions as they sold stock after the debt auction, which is enabling them to take some fresh positions,” a trader with a primary dealership said.

The benchmark bond yield had dropped to a two-month low at the start of the session on Friday, but reversed course to end marginally higher as traders secured profits after the news of JPMorgan’s inclusion, which will start on June 28, 2024, and extend over 10 months with 1% increments on its index weighting.

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